Multi-Family Investor and Lender Launches Thrive, FP Brand

Multi-Family Investor and Lender Launches Thrive, FP Brand

Austin, Texas (October 23, 2013)

A commercial real estate investment and lending firm that’s amassed a $140 million portfolio over the past two years is changing its name and broadening its focus.

Thrive, FP is the new name of Principals Capital Funding and First Capital Funding, two entities owned and operated by JP Newman and Adrian Lufschanowski. Over the past two years, the entities have raised equity funds and purchased more than 3,000 apartment units in Dallas, Houston, Austin, San Antonio and Tempe, Arizona alongside their operating partners. Under its First Capital Funding name, it has lent $30 million in “hard money” over the past three years as well.

Now, the Thrive, FP brand has united the two brands under a single name – and has put 1,500 additional units under contract with a total value of $60 million. The properties include the 659-unit Gessner Estates complex in Houston, 278-unit Arroyo Ranch complex in San Antonio, and three complexes totaling 422 units in north central Austin dubbed the Austin Portfolio. It’s purchasing the properties with Jevan Capital and Quez Capital, which will serve as the operating partners. It is slated to close on the properties in the next 30 to 90 days.

The real estate investment firm is simultaneously broadening its scope and enhancing its focus on greater impact for its apartment communities. The firm’s new name is Thrive, FP, with the FP standing for “for purpose, for profit.”

“We’re after a double bottom line. Our experience tells us you can do good and do well,” Newman, founder and CEO of Thrive, FP said. “What we mean by that is the old economic model tended to break investing down into winners and losers. In contrast, we want everyone in the economic chain to thrive – and thus our new name.”

The firm has historically focused on purchasing Class B apartments in major Texas cities. What its principals have noticed is while competitive Class A-level properties tend to incorporate social activities and tenant appreciation, that’s not the case in Class B and C properties – where tenants are even more inclined to appreciate events such as job fairs and upgrades that save energy and money.

“Our philosophy has evolved into believing that when tenants succeed, a property succeeds – and when a property succeeds, investors win,” Lufschanowski, president of Thrive, FP said. “We try and go above and beyond with our programming and special events, and our properties are consistently out-performing the market.”

Next up, the firm will be launching a new fund to purchase approximately $10 million in distressed assets in California. The goal is to buy 200 homes in the next four years in conjunction with Crest Equities LLC. Crest Equities will handle the acquisitions while Thrive, FP will raise the funds.

Thrive, FP is also expanding its lending practice to include “soft money.” Both hard and soft money lends funds to individuals that typically don’t qualify for bank loans. Hard money is for borrowers perceived as riskier, and interest rates are higher. Soft money borrowers typically have better credit and receive lower interest rates. Thrive, FP lends soft money at an interest rate of 8 to 11 percent, well below hard money rates. The loans are catered to builders and investors in residential apartments, as well as other commercial real estate borrowers.

Quick Links

DISCLAIMER: This advertisement is not an offer to sell or a solicitation for an investment into Thrive, FP or any of its investments. These notes offered by Thrive, FP are for the purposes of single lender transactions only (non-fractionalized notes). Thrive, FP has not registered these notes as securities and does not intend to in the future. Thrive, FP is relying upon the exemptions provided for in Section 5.J of the Texas Securities Act and Section 3(a)(11) and Rule 147 of the Securities Act of 1933 as well as other exemptions not specifically described in this disclaimer. This website supplies information about our various investment opportunities to our partners and clients. It is for information purposes only. Please refer to our subscription and other agreements for full details. Although Thrive, FP makes every effort to keep its website information current, we may list current projects that are no longer available for investment opportunities. We respect and seek to protect the privacy of our visitors. It is very important that you feel a sense of security and safety while visiting our web site. This website does not offer or sell securities, and any offers or sales of securities will only be made and consummated pursuant to the applicable private placement documents of the securities offering. Thrive FP is relying upon the exemptions provided under Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended, and/or other applicable federal and state securities exemptions. Click here for more information.